Unions and Small Businesses Challenge Politically Motivated Freeze of Child Care and Family Assistance Funding

This case challenges the Trump-Vance administration’s unlawful decision to freeze more than $10 billion in federal funding for child care and family assistance programs in five states.

On January 6, 2026, officials at the U.S. Department of Health and Human Services (HHS) and its Administration for Children and Families announced a sweeping funding freeze affecting programs in California, Colorado, Illinois, Minnesota, and New York. The freeze threatens child care providers, working parents, small businesses, and public employees who administer these essential programs.

The plaintiffs include two of the nation’s largest unions representing public employees and child care providers, along with a national small business advocacy organization and union affiliates. Together, they represent workers, providers, and business owners who rely on stable federal funding to ensure that families can access safe, affordable child care and critical family support services.

The lawsuit alleges that the funding freeze violates the Administrative Procedure Act because the administration failed to follow required legal procedures and lacked lawful authority to halt congressionally appropriated funds. The complaint also alleges that the freeze was imposed for improper political reasons, targets states based on their political leadership, and violates the First Amendment by punishing organizations and their members for protected speech and association.

On January 29, 2026, the plaintiffs filed a motion for preliminary injunction to block the unlawful funding freeze, as well as a motion to expedite the case.

The plaintiffs seek immediate court intervention to block the funding freeze, restore lawful distribution of funds, and prevent the federal government from using essential public programs as a tool of political retaliation.

Democracy Forward and Beeson, Tayer & Bodine represent the plaintiffs in this case to defend the rule of law and protect working families, child care providers, and small businesses from unlawful government action.